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Terna - 1Q 2019 Consolidated Results Presentation

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Terna - 1Q 2019 Consolidated Results Presentation

  1. 1. 1 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 May 9th 2019 1Q19 Consolidated Results
  2. 2. 2 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Agenda 1Q19 Results 6 Annexes 16 Highlights 3
  3. 3. 3 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Highlights
  4. 4. 4 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 24.1 26.0 27.0 30.5 26.6 27.0 26.9 26.3 26.5 28.4 25.5 26.4 23 25 27 29 31 33 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Monthy energy demand Previous Year Δ % -1.0% 1Q19 1Q18 80.3 81.1 Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) Highlights (1/2) Note: 2017 final figures. 2018 and 2019 preliminary figures Strong growth in PV and wind production 1Q19 data: ▪ National Demand at 80 TWh, o/w 32% covered by RES vs 30% in 1Q18 ▪ Net Total Production at 71 TWh • PV increased by 36% • Wind increased by 16% YoY Change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 0.7% 0.1% -3.5% 1.4% -0.8% 3.5% 2.1% -1.3% -1.5% 4.4% -2.2% -5.1% 2019
  5. 5. 5 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Solid results in all P&L lines 1Q 2019 Key Numbers 1. 1Q18 revenues reclassified in accordance with new IFRS. No impact at EBITDA level 2. Attributable to Terna 1Q 2018€mn Revenues +3% EBITDA +3% Group Net Income2 +2% Capex +16% 1Q 2019 FY 2018 Net Debt 7,919 7,899 Δ vs 1Q181Q 2019 537 5231 420 409 186 183 164 142 Highlights (2/2)
  6. 6. 6 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 1Q19 Results
  7. 7. 7 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 523 537 488 500 20 1913 143 412 -1 1 1 1Q18 ∆ Regulated Activities ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 1Q19 Revenues Note: figures may not add up due to rounding 1. Including IFRIC12 2. Construction margin, including IFRIC12 Insourcing attività di O&M Rete FS Revenues increase mainly driven by Regulated Activities 1 2 €mn Non Regulated Activities +14 +2.7% Regulated Activities1 Non Regulated Act. Tamini International Act.2 1Q 2019 results
  8. 8. 8 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 20 19 13 14 3 -1 1 1 4 36 37 1Q18 ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 1Q19 480 493 5 13 1 1 5 3 2 488 500 1Q18 ∆ Transmission & Dispatching ∆ Other ∆ IFRIC12 1Q19 Revenues Analysis €mn REGULATED ACTIVITIES €mn NON REGULATED AND INTERNATIONAL +12 +2.5% +2 +4.5% Higher contribution from Regulated, Tamini and International Transmission & Dispatching Other IFRIC 12 Note: figures may not add up due to rounding 1Q 2019 results Tamini Non Regulated Act. International Act. -1
  9. 9. 9 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 114 117 95 95 6 8 12 13 2 2 -0 2 2 0 1Q18 ∆ Regulated Activities ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 1Q19 1 +3 +2.6% €mn Non Regulated Activities Opex Note: figures may not add up due to rounding 1. Including IFRIC12 Insourcing attività di O&M Rete FSOpex under control Regulated Activities1 Non Regulated Act. Tamini International Act. 1Q 2019 results 0
  10. 10. 10 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 6 8 12 2 2 0 13 2 219 22 1Q18 ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 1Q19 54 57 38 4 -3 -1 35 3 2 95 95 1Q18 ∆ Labour Costs ∆ External Costs & Other ∆ IFRIC12 1Q19 Opex Analysis Insourcing attività di O&M Rete FSNon Regulated Opex driven by higher volumes of activity €mn REGULATED ACTIVITIES €mn NON REGULATED AND INTERNATIONAL -0.3 -0.3% +3 +17.4% Labour Costs External Costs & Other IFRIC 12 Note: figures may not add up due to rounding 1Q 2019 results Tamini Non Regulated Act. International Act.
  11. 11. 11 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 17 15 -2 1Q18 ∆ 1Q19 393 405 13 1Q18 ∆ 1Q19 409 420 1Q18 1Q19 EBITDA Insourcing attività di O&M Rete FS3% growth at EBITDA level €mn TOTAL EBITDA €mn REGULATED ACTIVITIES €mn NON REGULATED AND INTERNATIONAL +11 +2.7% Note: figures may not add up due to rounding 1Q 2019 results
  12. 12. 12 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 420 280 186 183 140 16 78 EBITDA D&A EBIT Net Financial Expenses Taxes Group Net Income Group Net Income 1Q18 From EBITDA to Net Income Note: figures may not add up due to rounding 1. Attributable to Terna. Excluding 1 €mn of Minorities in 1Q18. 2% growth at Net Income level 1 €mn 1 +2% YoY 1Q 2019 results
  13. 13. 13 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 6% 94% Incentivized Investments Other Regulated 20 9 97 136 25 20142 164 1Q18 1Q19 Incentivized Investments Other Regulated Other Capex Insourcing attività di O&M Rete FS 2019 Capex well on track TOTAL CAPEX €mn 21 REGULATED CAPEX 144€mn Note: figures may not add up due to rounding 1. I-NPR1+O-NPR1 in line with ARERA Resolution n. 579/17 2. Of which about 3 €mn of Capitalized Financial Charges 1Q 2019 results
  14. 14. 14 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 7,899 7,919297 109 164 42 Dec.31, 2018 Operating Cash Flow Δ WC & Other Capex Dividends & Equity Mar.31, 2019 Note: figures may not add up due to rounding 1. Including Other Fixed Assets Changes 2. Including Cash Flow Hedge reserve and other Cash Flow & Net Debt Evolution Strong operating cash flow generation €mn 2 Free Cash Flow to Equity +23 +19 1 1Q 2019 results
  15. 15. 15 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 80% 19% 1% Terna SpA Bonds EIB Banks Net Debt Evolution & Financial Structure 1. Percentages and key ratios calculated on Gross Debt nominal value 2. IAS value Maintaining a solid financial structure GROSS DEBT BREAKDOWN KEY RATIOS 1 1 Fixed/Floating Ratio Calculated on Gross Debt 100% Fixed Maturity 5.2 years 9.3 €bn 2 1Q 2019 results
  16. 16. 16 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Annexes
  17. 17. 17 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 € mn 1Q19 1Q18 Δmn Δ% Total Revenue 537 523 14 2.7% Regulated Activities 500 488 12 2.5% Transmission 464 451 13 2.9% Dispatching 28 29 0 -1.1% Other 5 5 1 15.2% IFRIC12 2 3 -1 -35.5% Non Regulated Activities 33 32 1 1.5% International Activities 4.2 3 1 35.5% Total Costs 117 114 3 2.6% Regulated Activities 95 95 0 -0.3% Labour Costs 57 54 4 7.3% External Costs 34 34 0 -1.2% Other 1 4 -3 -65.9% IFRIC12 2 3 -1 -35.5% Non Regulated Activities 21 17 3 18.4% International Activities 2 2 0 6.2% EBITDA 420 409 11 2.7% D&A 140 133 8 6.0% EBIT 280 277 3 1.1% Net Financial Charges 16 25 -9 -35.4% Pre Tax Profit 264 252 12 4.6% Taxes 78 69 9 13.7% Tax Rate (%) 29.5% 27.2% +2.4 pp Total Net Income 186 184 2 1.3% Minority Interest 0 1 -1 -100.0% Group Net Income 186 183 3 1.8% 1. Managerial Accounting 2. 1Q18 reclassified in accordance with new IFRS. No impact at EBITDA level 3. Including Quality of Service Consolidated Income Statement1 Annex 3 3 2
  18. 18. 18 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 € mn 1Q17 2Q17 3Q17 4Q17 FY17 Total Revenue 524 522 525 592 2,163 Regulated Activities 490 477 490 510 1,967 Transmission 451 444 453 457 1,804 Dispatching 29 27 29 27 112 Other 8 4 4 15 31 IFRIC12 2 3 4 11 21 Non Regulated Act. 34 44 34 77 189 International Activities 0 0 1 5 6 Total Costs 121 130 113 196 559 Regulated Activities 93 97 82 154 426 Labour Costs 53 54 46 65 218 External Costs 31 35 30 59 155 Other 7 5 1 19 32 IFRIC12 2 3 4 11 21 Non Regulated Act. 27 32 29 39 127 International Activities 1 1 2 3 7 EBITDA 403 392 412 397 1,604 D&A 130 131 129 137 527 EBIT 273 261 283 260 1,077 Net Financial Charges 21 19 29 21 89 Pre Tax Profit 252 242 254 240 988 Taxes 74 70 78 72 294 Tax Rate (%) 29.2% 29.0% 30.6% 30.2% 29.8% Total Net Income 179 172 177 167 694 Minority Interest -1 0 -1 8 6 Group Net Income 179 172 178 159 688 2017 Restated P&L Quarterly Figures1 Annex 1. Unaudited Managerial Accounting 2. Including Quality of Service 3. Construction margin, including IFRIC 12 2 2 3
  19. 19. 19 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Consolidated Balance Sheet Annex € mn PP&E Intangible Asset Financial Inv. and Other Total Fixed Assets Net WC Funds Net Capital Invested Financed by: Consolidated Net Debt Total Shareholder's Equity Total D/E Ratio D/D+E Ratio Number of Shares (mn) Mar. 31,2019 Dec. 31,2018 Δmn 13,268 13,244 23 511 519 -8 333 320 13 14,112 14,084 28 -1,717 -1,823 106 -279 -308 29 12,117 11,954 163 7,919 7,899 19 4,198 4,054 144 12,117 11,954 163 1.9 1.9 0.7 0.7 2,010 2,010
  20. 20. 20 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 1. Net of assets’ disposal 2. Including Other Fixed Assets Changes 3. Including Cash Flow Hedge accruals and other Consolidated Cash Flow Annex € mn Total Net Income D&A Net Change in Funds Operating Cash Flow Δ Working Capital & Other Cash Flow from Operating Activities Capital Expenditures Free Cash Flow to Equity Dividends & Equity Change in Net Cash (Debt)3 1Q19 186 140 -29 297 -109 187 -164 23 -42 -19 1 2 3
  21. 21. 21 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Capex Annex 1. I-NPR1+O-NPR1 in line with ARERA Resolution n. 579/17 2. Of which about 3 €mn of Capitalized Financial Charges € mn 1Q18 1Q19 Δ mn Δ% Incentivized Investment 20 9 -11 -54% Other Reguleted 97 136 38 39% Regulated Capex 117 144 28 24% Other 25 20 -5 -19% Total Group Capex 142 164 23 16% 1 2
  22. 22. 22 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 THIS DOCUMENT HAS BEEN PREPARED BY TERNA S.P.A. (THE “COMPANY”) FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES. THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT OR ANY MATERIAL DISCUSSED DURING THE PRESENTATION. THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE CONFERENCE CALL MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND CANNOT BE INTERPRETED AS A PROMISE OR GUARANTEE OF WHATSOEVER NATURE. HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES AND ARE CURRENT ONLY AT THE DATE THEY ARE MADE. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANY’S ACTUAL RESULTS AND PROVISIONS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANY’S BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT, DIFFERENT INTERPRETATION OF THE LAW AND REGULATION, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES. THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. TERNA DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN TERNA’S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS. EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS “AGOSTINO SCORNAJENCHI” DECLARES, PURSUANT TO PARAGRAPH 2 OF ARTICLE 154- BIS OF THE CONSOLIDATED LAW ON FINANCE, THAT THE ACCOUNTING INFORMATION CONTAINED IN THIS PRESENTATION, FOR WHAT CONCERNS THE ACTUAL FIGURES, CORRESPONDS TO THE DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS. Disclaimer
  23. 23. 23 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 Notes
  24. 24. 24 1Q19 CONSOLIDATED RESULTS MAY 9th 2019 investor.relations@terna.it I +39 06 8313 8282 I www.terna.it

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